"Inflation falls to 5.4% in December 2025 as price pressures ease" – Government Statistician

Ghana’s inflation rate declined further to 5.4 per cent in December 2025, marking the 12th consecutive month of disinflation and the lowest rate recorded since the Consumer Price Index (CPI) was rebased in 2021, the Government Statistician, Dr. Iddrisu Alhassan, PhD, has announced.

According to Dr. Alhassan, the December 2025 CPI stood at 261.7, up from 248.3 in December 2024, indicating that on average, goods and services were 5.4 per cent more expensive than a year earlier.

He explained that the sustained decline reflects a significant shift towards price stability and improving macroeconomic conditions.

“This outcome shows that inflation has fallen sharply by about 18.4 percentage points over the past year, signalling broad-based easing of price pressures across the economy,” Dr. Alhassan stated.

On a month-on-month basis, inflation stood at 0.9 per cent in December, meaning prices rose slightly between November and December 2025.

Dr. Alhassan noted that while short-term price movements persist, they are now occurring within a stable and downward long-term trend.

Breaking down the figures, the Government Statistician revealed that inflation declined across major components, including food, non-food, goods, and both locally produced and imported items.

Food inflation fell to 4.9 per cent year-on-year in December 2025, down sharply from 27.8 per cent in December 2024 and 6.6 per cent in November 2025. This represents a 22.9 percentage point decline over the year.

“Food accounts for about 43 per cent of household expenditure, so this decline provides significant relief to household budgets,” Dr. Alhassan explained, adding that food prices, however, increased marginally by 1.1 per cent on a month-on-month basis due to short-term and seasonal factors.

Non-food inflation also eased to 5.8 per cent in December 2025, down from 6.1 per cent in November and 20.3 per cent a year earlier, representing a 14.5 percentage point decline over the year.

Month-on-month, non-food prices rose by 0.6 per cent, indicating moderate pressure.

Dr. Alhassan further disclosed that goods inflation slowed to 5.8 per cent in December 2025, from 7.3 per cent in November and 23.1 per cent in December 2024.

Goods inflation therefore declined by 17.3 percentage points over the year, providing relief across a category that makes up nearly three-quarters of the CPI basket.

He added that the slowdown in food inflation was broad-based, driven by easing prices across major food subclasses such as vegetables, cereals, fish and meat, although some month-to-month fluctuations were observed.

Dr. Alhassan emphasised that the Ghana Statistical Service continues to improve how inflation data are presented, with deeper analysis of goods and services, contributions to inflation, annual average inflation, and the use of visual infographics to enhance public understanding.

“Inflation statistics must be clearly understood by households, businesses and policymakers. Our objective is to ensure the data informs decision-making and supports effective economic planning,” he said.

Story by: Joshua Kwabena Smith